£140M FUND FOR BUSINESS
PLANS to support economies hit by local lockdowns have been unveiled by the Welsh Government.
Wales Economy Minister Ken Skates laid out plans for up to £60m to be made available for a Local Lockdown Fund to help support businesses during a Welsh Government briefing yesterday.
He said their aim was to save as many jobs and businesses as possible.
The funding from the third phase of the Welsh Government’s Economic Resilience Fund (ERF) will see wider support being provided to secure jobs and help businesses develop, as well as additional help for firms affected by local lockdowns.
Mr Skates told the briefing: “The new Local Lockdown Fund will help businesses and individuals in those areas experiencing local restrictions.
“It’s likely that over the next few weeks and months we’ll see a rolling programme of restrictions to help us respond to local increases in cases.
“We need to be dynamic in responding to coronavirus and none of us wants to see a national lockdown if we can avoid it.
“But we know that businesses in containment areas will need extra help. We have worked incredibly hard to respond to Wales’s unique needs.”
■ Grants of £1,500 will be available to retail, leisure and hospitality businesses with a rateable value of between £12,001 and £51,000 that have seen a material impact on their business as a result of local restrictions;
■ Grants of £1,000 will be available to small businesses with a rateable value of £12,000 or less and who can similarly demonstrate a material impact on their business;
■ 5% of this funding will be made available to local authorities to support businesses materially impacted by local lockdown but not registered to pay business rates, with discretionary grants of up to £1,500.
He admitted that the coming winter was going to be “a difficult time for all of us”.
But he said the Welsh Government would be working in the national interest by putting in this additional package for Wales that complements the Job Support Scheme announced by the UK Government last week.
Mr Skates also announced a support package of £80m to help businesses prepare for the post-covid economy with business development grants.
He said: “The third phase of the Economic Resilience Fund will take a different form.
“It will be designed to support businesses with projects that can help them transition to the new normal.
“It will be more than just getting through. It’s about the potential to thrive in the future, not just to survive in the present.”
Details of the grants include:
■ Grants of up to £10,000 for micro businesses employing up to nine people for projects, on condition they match this with their own investment of at least 10%.
■ Grants of up to £150,000 for small and mediumsized businesses, with 10% minimum match funding required for small enterprises and 20% for medium-sized businesses.
■ And grants of up to £200,000 will be available for larger businesses employing more than 250 people, with 50% match funding from the business.
Mr Skates added: “Some sectors have faced particular challenges, including of course tourism and hospitality businesses, many of which have recorded zero or near zero turnover since March.
“So of the £80m, £20m will be ring-fenced to support tourism and hospitality businesses as they enter the winter months to give them a pathway through to spring 2021.
“Again, we will be making available more detail on the qualifying criteria for businesses with partners in the coming days.”
The new grants will be available in the first week of October, with applications open before the end of the month.
Mr Skates added: “This £140m will no doubt make the difference between business survival and business death for thousands of enterprises.
“But nobody should be under any illusions about the scale of the challenge ahead of us.
“That’s why, as a Welsh Government, we remain totally committed to working with our partners and to taking the necessary public health and economic support measures to tackle this virus and to help our economy through the winter months.”